Abstrak

According to the formulation, we can say that the purposes of this research are to know: 1) to know the effect of investment and employment toward the growth of economic in Indonesia during the period of 1990-2007. 2) to know the factor of employment that more dominant to influence the growth of economic in Indonesia during the period of 1990-2007. This research use explanatory research, it is the result that is obtained on this research. Hopefully, it can give explanation about how investment and employment can influence the growth of economic (Husaini, 2008:5). In collecting the data, this research use secondary data type. Resources of secondary data of this research are sample that are taken from Bank Indonesia, Badan Pusat Statistik (The center of Statistic Board), ADB (Asian development Bank). The method of collecting data that is used by researcher is documentation. From the result of processing data or analysis, we can know: (1)According to the result of ECM by using logarithm. Partially, we can know that investment towards the growth of economic significantly in long range or short range. (2)From significance test partially, we can know that employment in short range is not have influence toward the growth of economic. on the other hand employment in long range can influence the growth of economic. From the result of this research, we can conclude that employment in long range significant influence negatively is a dominant factor that influences the growth of economic in Indonesia during the period of 1990-2007. Therefore, the researcher can give suggestion to the government, it is better the government also take care of a great number of unemployment that is caused by the low field of work that is compared with increasing number of people in every year. keyword: investment, employment, growth of economic.